Questions from Cost Accounting

Q: Wharton has two classifications of professional staff: partners and associates.

Wharton has two classifications of professional staff: partners and associates. Peyton asks his assistant to examine the relative use of partners and associates on the recent Steger Enterprises and Bl...

Q: Marshall Devices manufactures metal products and uses activity-based costing to

Marshall Devices manufactures metal products and uses activity-based costing to allocate overhead costs to customer orders for pricing purposes. Many customer orders are won through competitive biddin...

Q: LawnCare USA provides lawn care and landscaping services to commercial clients.

LawnCare USA provides lawn care and landscaping services to commercial clients. LawnCare USA uses activity-based costing to bid on jobs and to evaluate their profitability. LawnCare USA reports the fo...

Q: The Solomon Company uses a job-costing system at its Dover

The Solomon Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Solomon uses normal costing with two direct-cost categorie...

Q: Kidman & Associates is a law firm specializing in labor relations and

Kidman & Associates is a law firm specializing in labor relations and employee-related work. It employs 30 professionals (5 partners and 25 associates) who work directly with its clients. The average...

Q: “Managers should always buy inventory in quantities that result in the

“Managers should always buy inventory in quantities that result in the lowest purchase cost per unit.” Do you agree? Why?

Q: Kidman has just completed a review of its job-costing system

Kidman has just completed a review of its job-costing system. This review included a detailed analysis of how past jobs used the firm’s resources and interviews with personnel about...

Q: The Zaf Radiator Company uses a normal-costing system with a

The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: Budgeted manufactur...

Q: Gardi Manufacturing uses normal costing for its job-costing system,

Gardi Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing...

Q: Adventure Designs makes custom backyard play structures that it sells to dealers

Adventure Designs makes custom backyard play structures that it sells to dealers across the Midwest. The play structures are produced in two departments, fabrication (a mostly automated department) an...